Forbes India
Automakers shipped about 4,50,000 vehicles to dealers in April, a 27 percent increase from 3,54,271 in the same month last year, showed industry data. The figures reflect wholesale dispatches, not actual purchases by consumers.The rise comes even as the conflict in West Asia clouds outlook. Periods of uncertainty tend to weigh on sentiment, often prompting households to postpone big-ticket purchases such as cars.The Society of Indian Automobile Manufacturers (Siam) had flagged in April that buyers in the entry-level segment were holding back, with inquiries remaining robust but purchases being delayed.So, what drove the numbers higher?According to analysts, the surge primarily has to do with carmakers replenishing inventory levels that were thin at the end of March.India’s largest carmaker, Maruti Suzuki, on Friday said its network stock was at 16 to 17 days, below the industry’s preferred level of 21 days.“You’re seeing a rise in April dispatches as carmakers were actively replenishing low stock levels in the network,” said Jay Kale, executive vice president-research, Elara Capital.“Vahan (registrations) data is the core metric for actual consumer demand and that remains healthy. Passenger vehicle (PV) registrations were up 19 percent YoY (year-on-year) in March and April combined.”Kale makes the March+April comparison as festive season (Chaitra Navratri) was in March versus April last year.Harshvardhan Sharma, head of auto retail practice at Nomura Research Institute, said apart from inventory replenishment after a strong FY26 closing, April numbers are also high because of strong carry-forward demand from March and continued momentum in SUVs, two-wheelers and select EV (electric vehicle) models.On war’s impact, Sharma said the West Asia crisis is more of a forward-looking risk than an immediate demand shock. “Its impact typically comes through crude prices, logistics costs, input inflation and eventually consumer confidence. Unless fuel prices or financing costs move sharply at the retail level, consumers do not immediately defer purchases, especially where bookings and waiting periods already exist,” he said.According to Vivek Sharma, automotive director at GlobalData Plc, Akshaya Tritiya, on April 19, combined with the wedding season running through May 15, provided a meaningful lift to sentiment.Analysts expected April retail sales to be healthy as well but not necessarily as buoyant as wholesales. They also warned that any hike in petrol prices could reverse this momentum.Also Read: Maruti Suzuki posts record sales in FY26 but rising costs hit profitApril SalesMarket leader Maruti reported its highest-ever monthly sales at 2,39,646 units, up 33 percent from a year earlier, with domestic volumes rising 34.5 percent to touch an all-time high of 1,91,122 units. Exports also surged 43 percent to 40,054 units, underscoring robust overseas demand.Mahindra & Mahindra, the second-largest carmaker, said its overall auto sales stood at 94,627 vehicles, a growth of 14 percent, including exports. In the utility vehicles segment, Mahindra sold 56,331 vehicles in the domestic market, a growth of 8 percent, and 57,833 vehicles overall, including exports. Domestic sales for commercial vehicles stood at 23,427.Tata Motors Passenger Vehicles posted total sales of 59,701 units, marking a 31 percent jump YoY, aided by continued momentum in both internal combustion engine vehicles and electric cars. EV volumes alone rose more than 70 percent from a year earlier, highlighting sustained consumer interest in electrification, it said.Hyundai Motor India followed with its strongest April domestic performance since inception, selling 51,902 units, a 17 percent increase from a year ago. The company also shipped 13,708 units overseas during the month, supported by strong traction for models such as the Venue and Creta.Kia India recorded its highest-ever April wholesale dispatches at 27,286 units, up 16 percent from a year earlier, driven by strong demand for the Seltos and Sonet SUVs.Growth, however, was not uniform across the industry. JSW MG Motor India reported a modest 3 percent increase in sales to 6,018 units, citing the ongoing West Asia crisis as having dampened consumer sentiment and disrupted supply chains.Renault India saw its sales more than doubling to 5,413 units, helped by its refreshed portfolio, including the new-generation Triber, Kiger and recently launched Duster.Beyond PVs, rural demand also showed resilience. Mahindra’s farm equipment business reported a 20 percent increase in domestic tractor sales to 46,404 units, even in the absence of festive tailwinds that supported volumes last year.EVs and mini carsEV registrations surged 74 percent YoY in April to 23,163 units, according to Vahan data. This takes EV penetration in the PV segment to 5.8 percent, up 205 basis points YoY, according to Elara Capital’s Kale.April also saw a resurgence of the entry-level segment. Sales of Maruti's mini cars—the Alto and S-Presso—rose 153 percent to 16,066 units from 6,332 a year earlier. A new production line at the company’s Kharkhoda plant helped it post higher sales in the entry-level segment.Earlier this week, Chairman RC Bhargava said he expected Maruti’s mini segment share to recover towards levels last seen in 2018-19, when affordable hatchbacks dominated the market before SUVs took over.Two-wheeler makers also began FY27 on a strong footing, led by double-digit growth at Honda and Royal Enfield, while Suzuki posted steady gains supported by exports.Honda Motorcycle & Scooter posted sales of 5.63 lakh units against 4.8 lakh in April 2025, clocking a growth of 17 percent YoY.Royal Enfield said its domestic sales were 1,04,129 units against 76,002 units in April 2025, up 37 percent. Suzuki Motorcycle India clocked sales of 1,17,514 units in April, compared to 112,948 units last year, a 4 percent growth YoY.For PVs, Nomura Research’s Sharma said the industry will need to watch May-June retail trends carefully. “If oil prices stay elevated or supply chain costs rise, the impact may show up later through higher ownership costs, margin pressure or a moderation in discretionary demand.”
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